Notification by the Bank That a Deposited Customer Check Was

question 4

Multiple Choice

Notification by the bank that a deposited customer check was returned NSF requires that the company make the following adjusting entry:

• A) Accounts Receivable Cash
• B) Cash Accounts Receivable
• C) Miscellaneous Expense Accounts Receivable
• D) No adjusting entry is necessary.

---

Definitions:

Variable Costs

Expenses that change in proportion to the activity or production level of a business.

Output

The total amount of goods or services produced by a company or economy in a given period.

Production Function

A technological relationship expressing the maximum quantity of a good attainable from different combinations of factor inputs.

Inputs

Resources used in the production process, including labor, capital, materials, and energy.